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Lenihan advised to change the law to allow NPRF buy Government bonds


DCon

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May 5, 2009
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Honohan is urging caution but the best advice money can buy is recommending it


An Irish official told Reuters earlier on Wednesday that Finance Minister Brian Lenihan has been urged by some senior advisers to change the law to allow the country's 24 billion euro state pension fund to buy Irish government bonds.
"You have to be very careful, knowing that if you want to do that, knowing that you are doing it and recognising that ... any kind of moving between different accounts would be seen through directly by market analysts." Patrick Honohan said
C.bank cautious on pension fund buying Irish bonds | Reuters
 

DCon

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hmmm

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Please god no. This will allow us to throw away the 10 billion or so we have left.
 

kerdasi amaq

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Why doesn't the market not want to invest in Irish government bonds?

Maybe, they'd be better of buying UK or US government bonds?
 

CookieMonster

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Is this the first time such a thing has been suggested? I don't think so, but maybe that's just something I heard... ;)
 

He3

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If a stockbroker advised you to put all your pension eggs in Ireland's basket - what would you do?
 

Sariel

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When was the law passed that forbid pension funds from buying Irish Government debt? Whoever made that decision didn't know what they were doing. What a stupid decision that was. We have the lowest holding of domestic debt in the EU and probably in the world, if they do purchase the debt the interest payments will stay in the country and reduce our transfer payments abroad.

Just comparing ourselves to the Japanese who hold something like 98% of debt. We hold 7%.

Richard Koo made the same point, that foreigners should be forbidden from buying Irish and Greek debt so the problem is contained to that country instead of spreading.
 

hmmm

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When was the law passed that forbid pension funds from buying Irish Government debt? Whoever made that decision didn't know what they were doing. What a stupid decision that was.
1. It would be a clear conflict of interest if the NTMA were told to buy Irish government debt.
2. Diversification is a core principle for competent management of an investment fund. If they were to buy Irish government bonds, it should be a tiny amount. The same people on here bleating about the NTMA not buying Irish government bonds would be the same people bleating if the pension fund lost 50% of its value because of a lack of diversification.
We have the lowest holding of domestic debt in the EU and probably in the world, if they do purchase the debt the interest payments will stay in the country and reduce our transfer payments abroad.
Let me see if I get this straight. We will issue debt through the NTMA, paying expensive staff in that organisation and paying expensive fees to primary bond dealers. Another part of the NTMA which itself pays expensive staff will then pay expensive fees to purchase those bonds. Do you realise how crazy this sounds?
 

MPB

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Nov 27, 2009
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Ever see a child playing hide and seek, when they cover their own eyes and believe that, because they cannot see you, you cannot see them.

Our Govt would put our children to shame.

It is a case of ball burst, game over for this country. FF have eventually managed to destroy the country they stole from dead heroes.

The people of this country should be ashamed of themselves.

Electing these parasites despite the long list of corruption foisted upon us. How many FF Taoisigh have to resign in disgrace before we realise that the whole party is corrupt?
 

spidermom

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OR.....The NPRF could buy lotto tickets internationally???
 

CookieMonster

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OR.....The NPRF could buy lotto tickets internationally???
I knew there were many reasons why I like you, but you've just added another.

Fantastic! :D
 

Radix

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So the race to the bottom continues.

I know Brian Lenihan has more cop on than to fall for this one.

It's one thing selling off the family copper, but to sell it off into a black hole?

And at the price of sacrificing the pensions reserve?

Speculators will have an almighty field day.

Ireland is pretty much fecked as it is with talks of a further €15 thousand million withdrawal, from public funds, risking the ability of the goose to continue laying golden eggs.

We need to take a stand now as a bust operation, and offer pence in the pound as any liquidator would do, and start afresh! If that means offending ECBers, and predator speculators, then so be it.

Otherwise we're just going to remain at the mercy of the speculators, who don't do mercy!

What awful gob************************es we have running the finance department, and more to the point, those who should be directing them, no names mentioned.
 

spidermom

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He3

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Oct 1, 2008
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Over 7 per cent return, roll up roll up

Unbeatable offer

Your pension is safe with .....

and so on.

Warning - you may get a 7 per cent return or you may just lose the lot we don't really have a clue
 
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